Survey finds South Africans adapting under financial pressure
· Citizen
South Africans continue to face significant financial pressure, with little to no choice but to adapt.
Visit sportbet.reviews for more information.
Budget Insurance released findings of its inaugural Financial Health Survey in late July, revealing that some respondents reported an improvement in their financial wellbeing over the past year. However, the majority did not share this sentiment, citing uncertainty about what the future holds.
Tando Ngibe, senior manager at Budget Insurance, said the findings are from more than 2 700 South Africans across diverse demographics, exploring consumer confidence, saving habits, insurance behaviour and spending decisions, providing a snapshot of how households are navigating an increasingly challenging economic environment.
Financial reality of many South Africans
Ngibe added that the findings reflect both the resilience and the reality of South Africans.
“Many households are making intentional financial decisions to manage difficult circumstances, but confidence in the future remains low. This tells us that consumers are coping, but they are doing so without the financial buffers needed to feel secure.”
Consumer Tebello Mokhotso told The Citizen he has adjusted to the current financial difficulties because he has no choice.
“I hear what the survey says, but we are not adjusting because we have a choice; we do so because what are we going to do? I can’t just stop existing because there are financial difficulties. For example, diesel is going up, but what am I going to do about it? Stop driving my car? Stop going to places? Nope, I will just have to adjust and cope.”
South Africans remain uncertain about the future
Ngibe noted that the findings suggest that while many people have adapted to ongoing economic pressures, uncertainty about the future continues to weigh heavily on household finances.
The Financial Health Survey highlighted that people still recognise the importance of saving, yet affordability remains one of the biggest obstacles. More than half (52%) of respondents say they cannot afford to actively save for the future.
59% of respondents earning below R10 000 per month reported being unable to save, while almost half of lower-middle-income (48%) and upper-middle-income earners (45%) said the same. In contrast, 57% of respondents earning R40 000 or more per month said they were actively saving.
Mokhotso, who did not disclose his salary but works in the banking sector, said he saves because there needs to be an emergency fund for his son, but during tough months, he sacrifices his monthly savings contributions.
Financial pressure is affecting wellbeing
The Financial Health Survey has also revealed the personal impact of financial strain. Among respondents whose lives have been affected by debt, 40% say it has negatively impacted their mental health.
“When financial pressure begins affecting people’s wellbeing, confidence and ability to plan ahead, it becomes more than just a financial issue,” said Ngibe. “Consumers need practical knowledge and support to help them make informed decisions, particularly during periods of economic uncertainty.”
Bongani Labase told The Citizen that being dependent on other people is not a good feeling.
“Going from being able to do things on your own, to having to ask for help, feels horrible. If it was not for my parents, I do not know where I would be.”
Many people just getting by
Most respondents describe themselves as “just getting by”, particularly those in the lower-middle and middle-income brackets. Meanwhile, respondents in higher-income households were more likely to report an improvement in their financial wellbeing over the past year.
Education costs also continue to place pressure on households regardless of income. Around 12% of respondents earning below R10 000 per month say they struggle to pay school fees, compared with approximately 13% of respondents in higher income brackets, suggesting this challenge extends well beyond lower-income families.
Despite the difficult financial times experienced by many South Africans, 55% of respondents say they continue to prioritise insurance, recognising the importance of protecting themselves and their families against unexpected events.
However, affordability is shaping consumer behaviour. Around 29% of respondents say they have cancelled or downgraded funeral cover, while 16% have done the same with portable possessions insurance and 14% with life or health insurance.